Renters in the UK are bearing the brunt of the cost of living crisis, with new figures from the Office for National Statistics (ONS) revealing a sharper rise in living expenses compared to homeowners.
According to the ONS, inflation for private renters soared to 3.6% in the year to March, significantly outpacing the national average inflation rate of 2.6%.
This stark increase underscores the growing financial pressure on the UK’s 5.5 million private tenants, further deepening housing inequality.
By contrast, homeowners saw a more modest 1.8% rise in costs, while those with mortgages experienced 2.8% inflation, a notable drop from 5.6% the previous year.
The decline for mortgage holders comes in the wake of several Bank of England base rate cuts in 2024 and early 2025, easing the cost of borrowing.
The figures come amid a worsening UK housing crisis, fuelled by a chronic shortage of affordable homes. While the Labour Party has pledged to build 1.5 million homes by 2030, the Office for Budget Responsibility has warned of a likely shortfall of around 200,000 properties, raising concerns over the delivery of that target.
Social renters, such as council housing tenants, were the next most affected group, experiencing 3% inflation, while working-age families also saw inflation rates above the average at 2.8%, compared to 2.1% for pensioners. Households with children were also hit harder, recording a 2.8% increase in costs, versus 2.6% for those without.
Think tank Resolution Foundation described housing as a “major headwind” in the ongoing cost-of-living challenges.
Senior economist Simon Pittaway told PA: “While inflation has eased overall, it’s clear some households are being disproportionately affected. Policy makers must prioritise targeted support for low-income renters and take urgent steps to increase the supply of affordable homes.”
With rising rents and stagnant wages, many renters are now facing unprecedented financial stress, putting housing policy firmly in the spotlight as the general election approaches.
